PenCom to attract 49m workers from informal sector through incentives

PenCom to attract 49m workers from informal sector through incentives

By Nana Musa
The National Pension Commission (PenCom), says it is collaborating with the pension operators in the country to introduce adequate incentives that would attract the over 49 million workers in the informal sector to be captured into the Micro Pension Plan (MPP) of the Federal Government.

PenCom’s Director General, Mrs Aisha Umar, stated this at the maiden edition of the Pension Conference organised by the Pension Correspondents Association of Nigeria (PENCAN), on Thursday in Abuja,

The theme of the one day conference was “Micro pension in a digitized economy: Prospects and challenges.”

Umar, who was represented by Mr Ibrahim Buwai, an Assistant General Manager in the commission, said different strategies were being deployed to ensure that MPP get the targeted figure.

She said that though commission was aware the current economic challenges was discouraging people’s voluntary contributions, the regulator was devising means to ensure that investments were not affected by key economic indices, especially inflation.

Umar said that efforts were ongoing to ensure that inflation index investments come on stream.
“The commission is liaising with the Debt Management Office (DMO) for inflation index bonds that will not be affected by the rising inflation currently experienced by the country.”

She urged the operators to work on documentation early enough to avoid the issue of late payment of pension benefits.

Umar said that Contributory Pension Scheme (CPS) had achieved a lot since it establishment.
“As at the time the scheme was being introduced in 2004, estimated pension liability was in excess of two trillion naira, today, pension assets are in excess of 15trillion.
“This is a proof that the scheme has achieved the purpose for which it was established,” he said.

She commended the organisers and urged them to continue sensitising the workers in the informal sector on the importance of the scheme.

The Chief Executive Officer of Pension Fund Operators Association of Nigeria (PenOp), Oguche Agudah said with large informal sector workers in Nigeria, there was need for implementation of robust plan to assist these workers in saving for their future.

Agudah, represented by Mayomikun Obadofin, Project Management lead at PenoP, urged operators to embark on sensitisation to build confidence and trust in the minds of Nigerians towards the effective implementation of the micro pension scheme.
Agudah said the association had rolled out some compounded interest overtime which differs from normal interest as well as the 40 per cent contingency withdrawal which ws done in the circumstance.

“Operators are in the process of expanding benefits of micro pension to health insurance, which means as long as you are saving from your micro pension account, you are entitled to your health insurance,” he said.
The Executive Secretary of Pension Transitional Arrangement Directorate (PTAD), Dr Chioma Ejikeme said, the directorate has recorded some notable achievements since establishment.

Ejikeme said that PTAD launched “I Am Alive” Confirmation (IAAC) Solution, an online application designed to enable pensioners on the Directorate’s payroll easily confirm their aliveness from the comfort of their homes or neighbourhood, using either a smartphone or a computer system.

Ejikeme whom was represented by the Head, Corporate Communications, PTAD, Mr Gbenga Ajayi, described “The “I Am Alive” Confirmation (IAAC) Solution is, safe, convenient, simple, and easy to use.
Ajayi also said that IAAC also help to eliminate the risks and stress associated with pensioners and PTAD staff travelling all over the country for periodic field verifications”

Ejikeme said that the success story in PTAD would not have been possible without the support and collaboration of the media, especially the association.

“This is why we are here to reciprocate the support you have given to the Directorate over the years.
“You have been immense in helping PTAD disseminate information to our pensioners and stakeholders, keep the news about the Directorate on the front burner and highlight our achievements”, she said.

A board member in the Contributory Pension and Happy Retirement Advocacy (COPEHRA), Mr Sani Mustapha, a Non-Governmental Organization (NGO), called for more participation in the MPP.

Mustapha, who was represented by Oyiminu Audu, said that the NGO support the development that would give happy retirement.
“ I urge Nigerian to see the bigger picture in this development as no one depends on children this day.”

The Provost and Founder of the Abuja School of Pension and Retirement Planning (APS), Dr Musa Ibrahim, commended the organisers, urging the informal sector to key in and take advantage of a happy retirement.

The Managing Director/CEO of Premium Pension, Umar Mairami, said the Pension Fund Administrator (PFA) has paid over N300 billion to Retirement Savings Account (RSA) holders from inception till date.

Mairami, represented by Head of Business Development (North) of Premium Pension, Ismaila Abdulsalam, said that the MPP being an offshoot of the CPS would ensure that the informal sector was not left out in the pension policies of the government.

Abdulsalam also said that at old age what was required was constant inflow of money, therefore, urging workers in the informal sector to go for micro pensions.

The Unit Head, Micro Pensions (North) at Access pensions, Zuwaira Haliru said pension fund administrators had realised the relevance of sensitisation in the successful implementation of the micro pension scheme.

“That is why PFA is taking the campaign to markets and other informal settings to communicate the benefits and why people should participate.”